(Xinhua) -- East Africa Community (EAC) member states
are on course to harmonize their capital market laws as part of
plans to develop a single financial market.
Kenya’s Capital Markets Authority
(CMA) CEO Paul Muthaura told Xinhua in Nairobi that EAC council
directives are currently in the process of being translated into
the national laws.
“There are now efforts to integrate
the national securities exchanges and central security
depositories so that it is easier to trade capital market
products across the region,” Muthaura said.
EAC member states include Kenya,
Uganda, Tanzania, Burundi, Rwanda and South Sudan. However,
Burundi and South Sudan have no capital markets.
Muthaura said the EAC is currently
helping Burundi to set up a securities exchange.
The partner states are now in the
process of ratifying the EAC directives. The CMA has already
completed developing the regulations to operationalize the
regional directives in Kenya.
Harmonizing of capital markets laws is
part of the implementation of the EAC Common Market Protocol
that calls for free movement of people, capital across the
CEO said trading across the region’s
securities markets is very inefficient as the systems are not
In addition, capital market players
have to register separately in each EAC state.